Unger Company has 12,000 units in beginning finished goods. If sales are expected to be 60,000 units for the year and Unger desires ending finished goods of 15,000 units, how many units must the company produce?
A) 57,000
B) 60,000
C) 63,000
D) 75,000

Question

Quizplus · Accepted Answer

To determine how many units Unger Company must produce, we need to use the following formula:

Units to Produce = Expected Sales + Desired Ending Inventory - Beginning Inventory

Units to Produce = 60,000 + 15,000 - 12,000
Units to Produce = 63,000

Therefore, the company must produce 63,000 units to meet the expected sales and desired ending inventory.

Unger Company Has 12,000 Units in Beginning Finished Goods